Going to hire a contractor in the USA? If your contractor is selfemployed (a sole proprietor in their country), you'll need them to fill out Form W8BEN.Honoraria payments are classified as independent contractor payments for federal and state tax purposes. Complete Section 1, Section 2, and if necessary,. Download our Washington independent contractor agreement so you can explain the services a contractor will perform a for a client. A common mistake employers make when filing tax reports is misclassifying employees as independent contractors. Learn how to determine a worker's status. One essential form for overseas contractors is Form W-8BEN. If you are paid as an "Independent Contractor" or. An individual must be properly characterized before a contract is signed and before payment is made.